Official LPG Depot in Denpasar Mixes Subsidised Gas, Police Seize Dozens of Gas Cylinders
A scheme involving the mixing of subsidised 3-kilogram Liquefied Petroleum Gas (LPG) cylinders in Denpasar has been exposed. The perpetrator was not an illicit retailer but the owner of an official depot who was supposed to distribute the subsidised gas to the public.
Denpasar Police Chief, Senior Commissioner Leonardo David Simatupang, stated that the perpetrator misused the distribution of 3kg LPG by mixing it into larger capacity cylinders for resale.
“The modus operandi involved not distributing the 3-kilogram LPG to the public but transferring it to 12-kilogram and 50-kilogram cylinders for resale,” Leonardo said during a press conference at Denpasar Police Headquarters on Wednesday (6/5/2026).
The case was uncovered at three locations in South Denpasar during April 2026. Police arrested three suspects with initials NA (48), KFB (27), and MP (56) while they were transferring the gas.
From the scene, police seized 13 50kg cylinders and 45 12kg cylinders from the mixing operation, as well as 212 3kg cylinders used as raw material. Additionally, operational vehicles and various equipment such as pipes, special hoses, and scales were confiscated.
Denpasar Police Criminal Investigation Chief, Commissioner Agus Riwayanto Diputra, revealed that based on the investigation, the state’s losses in this case were estimated to reach hundreds of millions of rupiah.
“The total state loss we calculated is approximately Rp 294 million,” Agus said.
He explained that the perpetrators’ profits came from the price difference between subsidised and non-subsidised LPG. In one instance, to produce one 12kg cylinder, the perpetrators needed four 3kg Elpiji cylinders.
“The cost is four 3kg cylinders, each priced at Rp 18,000, totalling Rp 72,000. Then sold as a 12kg cylinder for Rp 175,000, yielding a profit of about Rp 103,000 per cylinder,” he clarified.
If calculated, in one police report, the perpetrators could produce about seven cylinders per day over approximately 72 days.
“That profit multiplied amounts to about Rp 51 million from just one case we used as an example,” Agus stated.
According to him, the practice had been ongoing for about two months. The mixed gas was then marketed to various businesses.
“On average, it was sold to restaurants, laundries, and other businesses. Whereas the subsidy is meant for eligible members of the public,” he emphasised.
For their actions, the perpetrators are charged under Article 55 of Law No. 22 of 2001 on Oil and Gas as amended by Law No. 6 of 2023 on Job Creation, with a maximum penalty of six years’ imprisonment.
Additionally, they are charged under Article 32 paragraph (2) in conjunction with Article 30 of Law No. 2 of 1981 on Legal Metrology, with a penalty of six months’ imprisonment.